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The following information is for X Company's two products - A and B: Product A Product B Revenue $92,000 $88,000 Variable Costs 54,280 46,640 Fixed

The following information is for X Company's two products - A and B:

Product A Product B
Revenue $92,000 $88,000
Variable Costs 54,280 46,640
Fixed costs $28,520 $57,370
Profit $9,200 $-16,010

$3,708 of Product A's fixed costs are directly related to Product A; $7,458 of Product B's fixed costs are directly related to Product B. All other fixed costs are allocated to the individual products. X Company is considering droping Product B because of its reported loss

If it drops Product B, what will be the effect on firm profits?

A: $-11,109 B: $-13,886 C: $-17,358 D: $-21,697 E: $-27,122 F: $-33,902

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